Will the $5,000 Renault KWID succeed where the Tata Nano failed?

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Renault-Nissan is staking its strategy outside of Europe on entry-level cars with the Dacia and Datsun brands, and the brand's lineup in India will soon be joined by a tiny crossover called the KWID that's designed to be priced around $5,000.

The recently revealed Renault KWID may look look like Chevrolet Trax or a Fiat 500X-sized vehicle in photos, but in reality it is much smaller. With an overall length of 144 inches and a width of just 62 inches, it is over 1 foot shorter than a Ford Fiesta hatchback (a statistic that's admittedly difficult to process given just how small the Fiesta is to begin with). The KWID will also offer seven inches of ground clearance, which is a must for Indian roads. Renault won't be recycling old parts-bin items and technology with this crossover. Instead, it will use an all-new CMF-A platform that the company plans to use on other vehicles as well.

The KWID will be built in India and sold there, sourcing 98 percent of its components from suppliers within the country, and when it goes on sale it will launch the latest assault on the monopoly of scooters and mopeds in this rapidly growing automotive market.

Despite crossover bodystyle, the KWID will be over a foot shorter than a Ford Fiesta hatchback. Photo by Renault

This new crossover will try to succeed where the Tata Nano, released in 2009 and priced at the equivalent of $2,000 at launch, has failed. Despite prophecies of large-space adoption, the Nano ultimately turned out to be not enough car for the money, being priced just north of locally built upscale mopeds. Billed as the most affordable new production car in the world at the time, the 37-hp Nano never did get a large chunk of India's population off those mopeds and scooters.

But the aim of getting tens of millions of the country's two-wheel riders into cars has remained a prized goal for several manufacturers, especially for Renault given its success with the Dacia brand.

"With KWID, Renault continues to pursue its strategy of accessible mobility for all to step up its international growth," said Carlos Ghosn, chairman and chief executive officer of Groupe Renault. "Using a new Renault-Nissan Alliance platform and following the trail blazed by the Duster, the KWID will enable Renault to continue its expansion and address the needs of customers who want a vehicle that is stylish, robust and easy to use."

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Renault has not yet mentioned what will be powering the KWID, though most expect a three-cylinder engine with a displacement of just around one liter. Unlike the Nano, the KWID will actually try to be a car that will fully go up against more expensive used vehicles in the same market, rather than being a stretch purchase a level up from from something two or three-wheeled. The KWID will also boast a 7-inch touchscreen infotainment system along with Bluetooth connectivity and interior trim that isn't all black plastic.

Renault has no plans to introduce the KWID in Europe -- that's what Dacia is for -- but Ghosn indicated that it will be offered in other emerging automotive markets.